Microsoft has pushed back against reports suggesting that the approval of foreign-worker visas was the driving factor behind recent mass layoffs impacting the Xbox division. Frank X. Shaw, Microsoft's communications lead, stated on Twitter that this information is inaccurate.
Shaw clarified that while Microsoft does employ individuals on H-1B visas, these workers are not exclusively tied to Xbox and constitute a small fraction of the company's overall workforce. He further emphasized that the majority of the roles affected by the layoffs were not American positions, and the recent workforce adjustments were made to restructure the Xbox business, which he described as unhealthy, rather than to substitute employees with foreign workers.
These comments follow reports from conservative news outlets highlighting Microsoft's approval for over 2,200 H-1B visas this year. Microsoft had previously informed Fox News that H-1B visa holders were indeed among those impacted by the layoffs.
The recent layoffs represent one of the most significant reductions in the gaming industry, with approximately 20% of the Xbox workforce being let go. In addition to personnel reductions, Microsoft also divested from five of its studios. Double Fine and Compulsion Games are set to return to independent operations. Ninja Theory and Undead Labs are being sold to an undisclosed buyer, while Microsoft is exploring sale or separation options for Arkane.
Even the studios that will continue under Microsoft's umbrella experienced substantial staffing cuts. Id Software, for instance, reportedly lost around half of its employees shortly after the launch of its latest expansion, Doom: The Dark Ages.